• The stock price of Goodyear Tire (NASDAQ: GT) fell by 3.33% today. This is why.

The stock price of Goodyear Tire (NASDAQ: GT) fell by 3.33% today.

Why: Q4 results

Results: Goodyear Tire reported a Q4 EPS of $0.07, which was $0.12 lower than a consensus of $0.19. And the revenue for the quarter was $5.37 billion compared to a consensus of $5.23 billion.

KEY QUOTES:

“During the fourth quarter, our volume outperformed the industry in both replacement and OE. Performance in replacement was driven by share gains in the Americas consumer business, while global OE volumes grew above industry levels, thanks to the ramp-up of new fitments. Our replacement volume was helped by a U.S. consumer who remained resilient through the fourth quarter.”

“Our net sales in the quarter grew 6% compared with last year (13% excluding foreign currency), primarily due to pricing actions that drove revenue per tire 17% higher (excluding foreign currency) than fourth quarter 2021 levels. Importantly, our regions delivered the pricing they had set out to achieve at the beginning of the quarter and our value proposition remains intact.”

“While the strong revenue per tire and market share gains that carried us through most of 2022 continued during the fourth quarter, they were not enough to offset weaker industry conditions and a quarterly high point of inflationary cost increases. As a result, operating results moderated, especially in our EMEA region, where these conditions were felt most acutely.”

— Richard J. Kramer, Chairman, CEO, and President